Early trade in New York: Dollar rises on weaker euro, Swiss franc and yen

NEW YORK: The US dollar bounced to a 2-week high on Monday on weakness in the euro, Swiss franc and Japanese yen amid views that the US has an advantage in growing its economy and vaccinating its population against COVID-19.

The dollar index was up 0.21% to 90.815 at mid-morning in New York, while the euro was off 0.36% to $1.209. Against the Swiss franc the dollar was up 0.45%.

The euro weakened after Germany reported that retail sales plunged by an unexpected 9.6% in December after tighter lockdowns last year to curb the spread of COVID-19 choked consumer spending in Europe’s largest economy.

The dollar may be more resilient in the near-term because “both growth and vaccination favour the U.S,” said Kamal Sharma, director of G10 FX strategy at BofA Merrill Lynch Global Research.

The Australian and New Zealand dollars gave up early gains and were down 0.1% and 0.11%, respectively, against the greenback.

The US dollar also gained 0.3% against the Norwegian crown to 8.5815 crowns per dollar.